The Baan purchase was made a year after Invensys had bought a smaller ERP vendor, Marcom Solutions Inc., for about $60 million. At the time of the Baan purchase, Invensys said it planned to spend as much as $1.5 billion to return Baan to profitability. Baan was losing nearly $1 million a day and had net losses of $309.6 million in 1999.
Invensys' decision to sell the Baan unit and other assets will leave it with one core business focused on production management and a rail systems division.
In a trading update Invensys released on Tuesday, it said operating profit for the year ended March 31 is expected to be approximately $393.8 million. Its shares have been on a downward slide for more than a year, falling more than 85%.
The expected revenue generated by the divisions--including Baan--that Invensys plans to sell is about $4.57 billion. Proceeds raised from the sales will be used to pay off debt and fund pension schemes, as well as for investments required to grow market share in the remaining production-management and rail-systems divisions, the company says.